ISM Non-Manufacturing Falls on Hurricanes, Pending Home Sales Hit Record

- ISM Non-Manufacturing for September fell to 53.3 versus estimates of 60.0 and a reading of 65.0 in August.
- Pending Home Sales for August rose 3.2% versus estimates of a .5% decline and a .7% fall in July.

BOTTOM LINE: US service industries expanded at the slowest pace in more than two years in September as Hurricanes Katrina and Rita shut down Gulf Coast businesses and pushed costs for materials and supplies to a record, Bloomberg reported. The Prices Paid component of the index rose to 81.4 from 67.1. The employment gauge fell to 54.9 from 59.6. The New Orders component of the index fell to 56.6 from 65.8. I expect this index to bounce back next month as consumer spending has remained healthy despite the effects of the hurricanes.